Oil prices slip as Strait of Hormuz reopens after Iran–US peace deal

Brent crude futures dropped by 43 cents, or 0.54%, settling at $79.42 per barrel, while US West Texas Intermediate (WTI) eased slightly to $76.43. The more active August Brent contract also saw a decline, reflecting cautious trading

Global oil prices edged lower on Friday after a sudden improvement in Middle East supply conditions, as tankers resumed movement through the Strait of Hormuz following a newly signed peace arrangement between the United States and Iran.

Brent crude futures dropped by 43 cents, or 0.54%, settling at $79.42 per barrel, while US West Texas Intermediate (WTI) eased slightly to $76.43. The more active August Brent contract also saw a decline, reflecting cautious trading sentiment despite easing geopolitical tensions.

The decline came after several oil tankers, including Saudi-flagged vessels carrying millions of barrels of crude, successfully passed through the Strait of Hormuz. Their movement followed a breakthrough agreement between Iran and the United States aimed at ending recent hostilities and restoring maritime stability in the region.

Market analysts expect the deal to gradually unlock significant volumes of crude previously stranded in the Middle East, with estimates suggesting tens of millions of barrels could re-enter global supply chains. The easing of restrictions on Iranian oil exports is also projected to add further downward pressure on prices if fully implemented.

Despite the initial optimism, traders remain cautious. Experts note that oil markets are waiting for sustained confirmation that shipping through the Strait has fully normalized before committing to a stronger downward price trend.

Producers in the Gulf region have already begun preparing to restore output levels. Kuwait has lifted emergency export restrictions, while Iraq has signaled a phased return to normal production capacity.

However, lingering regional tensions and ongoing conflicts in parts of the Middle East continue to cloud the outlook, raising questions over whether the recent peace deal will hold in the long term.